Bad Credit Mortgages and how to get One

Can I get a mortgage with bad credit?

Yes. It is possible to get a mortgage if you have bad credit, except if you are bankrupt. Most lenders will only give mortgages to people that have a discharged bankruptcy of six years or more. If you have any County Court Judgements you can still get a mortgage as long as they have ben paid.

Will I pay more interest?

Yes. Your mortgage will have a higher interest rate than someone with a good credit score. As you build up good credit, you should be able to exchange your mortgage for one with a lower rate, but this will probably take some years.

Do I need a higher deposit?

Yes. You will be asked to put down more money. It is usually about 15% more than a lender will normally ask. For example, if someone wants to buy a property for £100,000 they might be asked for a £5,000 or £10,000 deposit depending on the lender, that’s 5 – 10%. If you have bad credit then you may have to put down £10,000 or even £15,000 which is 10 – 15%.

Can I get a mortgage from a government scheme?

Unfortunately, no. If you are looking at Shared Ownership or the Help to Buy Scheme you do need to have a good credit rating to obtain a normal mortgage.

How do lenders know I have a bad credit history?

If you apply for a mortgage, a loan or any other form of credit the lender will do a credit check. This means that they will get a copy of your credit file. They can do this because in most applications you’ll be asked to give your permission for a search to be carried out. If you don’t give permission you when you are asked, you won’t be offered credit.

How can I get my credit rating to improve?

Over time, it is possible to improve your credit rating. There are a few things you can do to make it better. For example, if you have a County Court Judgement against you, try to build up your credit immediately. This will mean that after six years, when the judgement disappears from your file, you will have a much better credit score.

* If your loan is approved, funds may be cleared and in your account in around 10 minutes.
This is subject to lender checks and clearing times. Our service software will find a match
offering the lowest APR rate possible within our network based on availability.

Lowest APR - Our software system uses sophisticated algorithms to search for and match your
application with a lender offering the lowest APR rate possible based on your current
circumstances. APR rates depend on specific factors and risk and range from 45.3% to
1575%.

Loan Amounts - Your actual loan offer may be less than what you applied for, this is because
every loan application is considered and dependent on affordability. Lenders will consider
loan period, income and outgoings so a decision might be to decline the requested loan but
may accept and present a lower amount offer. Applications may be accepted on a different
borrowing period; this is due to the circumstances of the borrower and the repayments of
the loan based on available income.

Consumer Advisory: Moneypod is a loan matching service. This site will submit the information
you provide to a direct lender. Upon loan approval, a direct lender may require further
information from you which will be collected after we transfer you to their website or they
may contact you via phone or email.

The operator of this site is not a direct lender. Loan terms, conditions and policies vary by
lender and applicant qualifications. Late or missed loan payments may be subject to
increased fees and interest rates. Not all lending partners offer up to £3,500 loans, and
not all applicants will be approved for their requested loan amounts. Loan repayment periods
vary by lender also. Lenders may use collection services for non-payment of loans.

Not all borrowers will qualify for a loan, the operator of this website does not engage in
any direct consumer lending, we simply provide a FREE loan matching service to the
public.

Representative: 278.2% APR

Representative Example: Amount of credit: £900 for 11 months at £154.90 per month. Total
repayment of £1,703.91. Interest: £803.91. Interest rate: 150% pa (fixed). 278.2% APR
Representative. Rates from 45.3% APR to 1575% APR - quotes and APR will be based on your
personal circumstances. Nouveau Finance Limited is authorised and regulated by the Financial
Conduct Authority and is entered on the Financial Services Register under reference number:
727348 We are a credit broker and not a lender and offer credit facilities from a panel of
lenders.

*Fund transfer times may vary based on the matched UK money lender, time of day applied and
your bank.